October 23, 2010

Don’t be evil? Google’s tax evasion

Ireland has given the world many things: Guinness, the Blarney Stone, U2 and James Joyce to name a few. Add to that tax evasion for high tech companies.

Bloomberg reports that Google paid only 2.4% overseas tax over the last few years, thanks to two tax dodging techniques: the “Double Irish” which involves it shuttling foreign profits through its Irish operation to Bermuda, involving two Irish companies (hence: Double) and the “Dutch sandwich” which involves setting up a middle company in the Netherlands, with which Ireland has favourable tax agreements.